Speaking to Bloomberg, Harvard’s superstar crisis economist Ken Rogoff declares that the much-anticipated collapse of the Chinese property market is here.”You’re starting to see that collapse in property and it’s going to hit the banking system,” said Rogoff, 57, who also serves on the Group of 30, a panel of central bankers, finance officials and academics led by former Federal Reserve Chairman Paul Volcker. “They have a lot of tools and some very competent management, but it’s not easy.”
Meanwhile, we’re still waiting the official pricing of the Chinese Agriculture Bank IPO, a potential measure of Chinese bank and property confidence.
Agricultural Bank of China Ltd. will likely price shares today in an initial public offering that may raise as much as $20.1 billion, two people with knowledge of the matter said.
China’s largest bank by customers is selling 25.4 billion shares in Hong Kong at HK$2.88 to HK$3.48 apiece, and an additional 22.2 billion in Shanghai at 2.52 yuan to 2.68 yuan. Beijing-based Agricultural Bank has said it expects to announce final pricing tomorrow.